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Monday, 21 July 2014

Effectiveness of Marketing Spend

Marketing
spending is an organization's total expenses on marketing activities. This
usually includes advertising and non-price promotion. It also sometimes includes sales force spending and price promotions.

In
a recent survey of nearly 200 senior marketing managers, 52 percent said that
they found the "Marketing spending" metric very useful. A massive
amount of money is spent on marketing. Depending on the industry a company may
invest up to 30 percent of its budget, or sometimes even more, in marketing or
we can say for its brand recognition. This spend is often divided into above
the line which includes traditional communications and banners and below the
line in which advertising based on qualitative argument. Everyone has heard the
phrase “You have to spend money to make money.” However many companies
think that by not spending they are saving. But by not spending on marketing,
they are missing out on an enormous amount of business. People will work on
corporate identity, but not plan for the budget to implement it. While it’s
essential to have an initial budget for developing your marketing tools.

The
best way to do this is to create a marketing strategy and setting a monthly or
yearly marketing budget to make sure it happens. A marketing budget is a guide
to ensure that you are staying on target with estimated costs vs the actual
costs.

Marketing
is a basic ingredient for growth and profitability. Many companies fail simply
because they do not allocate enough budget for marketing. When it done
properly, marketing brings back sold returns.